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Zero VAT for air transportation in the Far Eastern Federal District bill submitted to the State Duma - EastRussia | Far East

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Zero VAT for air transportation in the Far Eastern Federal District the bill is submitted to the State Duma

The Government of the Russian Federation submitted for consideration by State Duma deputies a draft law prepared by the Ministry of Finance, which nullifies the VAT rate for air transportation to the regions of the Far East, the press service of the Ministry of Regional Development said. The initiative to abolish VAT for Far Eastern flights belongs to Minvostokrazvitiya.

The bill is an amendment to Art. 164 of the Tax Code, zeroing the VAT rate for organizations providing services for domestic air transport of passengers and baggage, provided that the point of departure and / or destination is located in the Far Eastern Federal District. Now the VAT rate in 10% is valid. As expected, the measure will increase the profitability of flights, reduce the price of tickets and increase passenger traffic by 2-3% per year.

The bill was developed following the results of the meeting of the commission on socio-economic development of the Far East and the Baikal region 28 November 2017. The amendment was approved at a meeting of the government of the Russian Federation 6 June 2018.